Telephone & Data Systems (NYSE:TDS)

A diversified telecommunications service company with wireless telephone and wireline telephone operations. It conducts its wireless operations through United States Cellular Corporation and its wireline operations through TDS Telecommunications Corp.

T, PCS, and LEAP are all trading at ridiculous levels higher than book value especially when compared to some of its peers (see buy list). Additionally taking into account their balance sheet expansion over the past 4 years, their future will be severely limited relative to its rivals going forward. These five already seemed priced to perfection. Although CLWR's financials indicate its ability to continue expansion, its valuation today suggest success of rolling out Wimax profitably - I am going against the market on this one (Sprint is already priced at a discount)With the funds gained from selling short the aboveBUY VZ, S, USM, TDSThese companies are trading at a good value to its book. Verizon only shows value if compared to its biggest competitor, AT&T. As the rollout of 4G actually plays out by end of 2010, whether its LTE (VZ/AT&T's technology) or WiMax (Clearwire/Sprint/Intel's tech), VZ will have access to an even wider market (by having common network as AT&T) and Sprint is likely to carry SOME profit out of the mess. Sprint is already priced to failure of its Wimax technology, even if it shifed gears on technology & took further massive writedowns on its intangibles, its potential for expansion in the future seems strong. USM & TDS are essentially the same company through insider ownership & show great value compared to its rivals on the short list at the top of the pitch.Disclosure: Currently own shares in USM. Am looking to jumping in some of the plays mentioned above.

Granted they are in the proverbial under served markets for DSL, wireless and the like but those markets are also he ones with the least disposable income that will have to cut something until they see some value return to their homes and the like. Once the "flyover" country gets interested and it's not so costly to serve them then TDS will be well positioned but more likely as a takeover target.